if there is any obscenities, first sentence is crucial in the e-mail. thanks for watching us. i'm bill o'reilly and the spin stops right here and we are definitely looking on the out for you. >> sean: so if gop field plans to stop romney winning streak, the critical showdown in south carolina. he has faced an all out barrage of attacks. now, the gop front-runner is fighting back with new ad of his own. it's time for media mash. >> the government is getting

bigger. >>. >> sean: as we look at mainstream media. plus jim demint unveils his plan on saving the nation from an all out economic collapse. our countdown continues. >> we are few days from the critical showdown in sections that you can only see right here republicans' primary debate in myrtle beach. it will likely be proving ground for some presidential candidates. according to a new survey, the gop field has some work to do in the state because governor romney continues to lead. he has 28% of the vote. gingrich 21% vold followed by rick santorum and congressman ron paul. joining me from washington is a preview of monday night's big debate, dr. charles krauthammer.

welcome back. >> happy to be here. >> sean: we've got the rasmussen report and public policy poll, 29-24 romney, two-point margin for governor romney and what do you make of the polls and what is the state of it? >> he is much higher than he was a week ago. it tells you negative advertising works and he is getting it from all sides. he could be the only guy in history who is going accused of being a right ring corporate raider who introduced socialized medicine in massachusetts. the real question for me is this. does he have a good answer for the bain question? it is obvious it was going to come from obama. they are going to use tens of millions of dollars of ads and person after person, worker

after worker who lost their job and they are going to hit him. it came early unexpectedly. i was surprised how unprepared he has been. he gives a general answer, this is an attack on capitalism but that is not effective enough. he has to get in there and explain what he did, i don't mean in detail. exactly what his line of work was. how the economy needs it. how it helps to look after to go into bailing companies and trying to save them by making them leaner and productive. he has to come up with an answer particularly on the debate on monday night where he is going to have a little time to explain himself. >> sean: there were a couple other stories, but we're talking about staples and sports

authority. they have created jobs. one of big controversies, how many jobs. he said 100,000 jobs. that has been brought in dispute. if you had to give him advice, how would you advise him. what would you say is the best answer? >> number one. never use the phrase net. it makes you sound like some cold-blooded capitalist. i would do jujitsu on obama, went in and tried to rescue gm and chrysler. what did they do, they slimmed it down. a lot of workers lost their work. a lot of dealerships were closed. pontiac line and other lines were shut down. a lot of individual suffering. that was the democrats, that was the government. that was the people who supposedly who care about the

workers of the middle-class. that is what you have to do when a business is about to go under and everyone is going to lose their job. you make it efficient and productive and you save some of the jobs and you grow it so that later you add on to other jobs. which is in fact what happened to some of the failed companies that the bain corporation invested in that initially slimmed down and added ultimately affiliates and added workers and new factories. >> sean: we had newt gingrich on the show, he said i didn't want to the tone to go into this direction. it's like i'm going to in a battle, i got to fight back. if you look at polls, charles, you've seen focus groups on

this. people will say all the time, they don't like negative ads. negative ads work. if they didn't work, they wouldn't be used, right? >> the reason that people got so upset with newt, i'm talking about the "wall street journal" is because it's not he went negative. everybody ultimately will do something negative. if he had run negative ads on romney care, socialized medicine. here is a guy that wants to go up against obama, obamacare, how it was a huge issue in 2010, he is the guy who disarmed. romney would be guy. if he had brought ads like that, there wouldn't be the anger and disgust. you wouldn't have people saying what exactly is he up to. you wouldn't have guliani, what

the hell is newt doing. he attacked him from something that most agreed upon, that there is a row of private equity capitalism and he was attacking it broadly. >> sean: rick perry was using worse description, taking advantage of companies and vulture capitalism. i agree on your point on that. there are ads that have been run against newt, they brutalized him in iowa. some of those things in ads were factually inaccurate. so i think it gotten unfair. i am mixed mind. i don't like the tone. i would prefer the debate at a higher level. barack obama will have close to a billion dollars to throw whoever the republican nominee is. isn't this a proving ground, an

opportunity for them to vet these issues now and hopefully by the time election comes, people will be rolling their eyes, i told them this? >> i think so. it could be an opportunity. it's a challenge and it's a moment that romney is going to have to meet. i said on special report this is even going to be a poison or it's going to be an inoculation. the question is can romney develop antibiotics antibodies. that i don't know. we'll have to see that in south carolina. >> sean: he needs a good answer monday night. we'll be in south carolina and we'll be watching. >> the answer to that is success sink but human and personal. it's not about the workings of the system, it isn't about numbers but humans. i think he can explain it. the whole capitalist system is a system that ultimately humans,

the ordinary worker has improved his condition. we are the wealthiest of society in history. as a result of two centuries of capitalism. that is what happened. you have to complain it not in generalities or political way but a way that can be understood that is individual, sort of human and humane. >> sean: did you see the poll this week, 19% more, in terms of percentage points, americans buy into the rich versus the poor argument because the president has been, you know, igniting this battle this conflict. so i don't think we'll hear the end of it monday night but it could be a start for a debate i think will define the election? >> i think it is. the republicans had one narrative in 2010 and through most of the year in 2011, about

debt, extravagance, growth of government. the assault on the individual. obama came up with a counter narrative about inequality, about the pluto crats and robbing and stealing of the middle-class. second narrative is success is a seeding but unfortunately a lot of republicans in this race are helping it to succeed. i think it has to change. >> sean: appreciate you being with us. coming up, the bias in the media. plus, cofounder of the senate tea party caucus, jim demint. we'll get a preview of the primary but first the front-runner fights back, romney releases a new ad at the time in bain capital. does it meet charles drought hammer's standards. we'll look at that, next.

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stop taking cialis and call your doctor right away. [ male announcer ] ask your doctor if cialis for daily use is right for you. for a 30-tablet free trial offer, go to cialis.com. >> sean: after facing a week of attack ads and rhetoric from both sides, mitt romney is attempting to set the record set at bain capital. let's take a look at a new campaign ad. >> this a business mitt romney started. and this one. and this one. mitt romney helped create and ran a company that invested in

struggling businesses, grew new ones and rebuilt old ones creating thousands of jobs. those are the facts. we expected the obama administration to put free markets on trial but as the "wall street journal" said, mr. romney's gop opponents are embarrassing themselves. >> sean: is that enough to clear the air ahead of debate? or will the attacks continue? charles payne from fox business network, michelle field says here from daily caller. i think the scenes no. >> absolutely not. >> sean: charles krauthammer, clear the air, have a good answer. what is the best answer? >> i think having these ads and explaining this is a good start. why is gingrich attacking the free market. >> sean: he has asked the super

pack to back off. but he backed off earlier in the week. rick perry has had the harshest language, vulture captain livm. where do we go from here? >> i think romney needs to explain, that making a profit is not a bad thing. profits are good. profits help businesses. they help their growth. they return capital to investors who then can make the growth of other companies. romney needs to explain this instead of having sounds soundbites unstead of saying, i like to fire people. >> sean: i think was a mistake to go after him on bain. newt seems to have adjusted. he got the message. i'm not sure where rick perry is on it. in the end. do you think this is going to hurt romney. polls show it's hurting. >> right now i think it is going to hurt him unless he turns this

around. that ad is a small step in the right direction. listen, mitt doesn't like to get punched in the nose. it's good that he is getting scuffed up. newt might be backing off. the damage is done. what i was worried about is the idea that any republican, particularly someone who says they are conservative would attack a pillar of the republican party. >> sean: was it different when gingrich being attacked because did work but advised fred dir mack? wait a minute, that is capitalism, too. they had people that wanted their service and he was attacked by romney. this really seems to be all sides here. >> there was brass knuckle out there. but i think it went further than a personal ago and it went to the heart of the republican party and heart of success.

the president laid it out this week when he talked about insourcing. he wants companies to insource based out of morality, right? class warfare and all of soundbites. >> sean: i've watched these ads and some of things are not true, period. >> he has to undue the damage. >> sean: i don't want to take sides here. $15 million in ads fighting against gingrich. he is mad. he thinks a lot of things were not true were said. now an attack romney. is it good or bad? >> it's horrible. romney needs to clear the air. romney has really been damaged by this. he needs to explain that creative destruction is not a bad thing. >> sean: $15 million by newt

damage him. negative ads work. we say we don't like that, baloney. >> this is i'm worried about. i'm not worried about the ads of individual candidate. the notion that capitalism doesn't work. that is the part i'm worried about. with staples, what i read on google, when mitt romney put the money in, they had one store. they one store to 1100 stores. that is the foundation of this nation. that is amazing stuff. >> sean: i agree with that but i also believe that somebody comes to your group and you want advice, hey, don't run it the way you are running it. maybe in fairness that shouldn't have happened either. i'm have mixed mind because it will make the ultimate candidate stronger. >> mitt needs to be punched in the mouth a couple times.

if it's ron paul, whoever it is -- what are you laughing about. >> sean: you made a weird face. one like that. whatever it is. they better be ready for a brass knuckle fight and dirty and low down. >> i think if we shouldn't be attacking the free market. as conservatives we should not. >> sean: right thing for newt to ask the super pack to stop running it, yes. we agree. but romney should he ask super pack, gingrich is unfair, she he also jump in and they should both go to a neutral corner? >> absolutely. someone wants my vote, i want. >> sean: everybody says a

negative ad runs works. obama is going to run his entire campaign on it. >> they took a page out of obama's playbook and it's going to come back. >> sean: first time on the show. welcome aboard. thank you. >> sean: charles, thank you. coming up, south carolina senator jim demint is here for the critical battle and i tell you great, great, great friday american panel coming up. is non? just carry preparation h totables. discreet, little tubes packed with big relief. from the brand doctors recommend most by name. preparation h totables. the anywhere preparation h. but think about your heart. 2% has over half the saturated fat of whole milk. want to cut back on fat and not compromisen taste? try smart balance fat free milk.

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>> sean: back to hannity and time for media mash, all the ways media puts a liberal spin on your news. joining me, never a shortage, president of media research center, brent boe. how are you? >> fine. >> sean: this whole issue of i like to fire people but the media has an obligation to get it right, right? they know it was out of context but keep hammering it home.

let's roll the tape. >> yesterday, like to fire people. the only thing worse you could say, in a time like this when people are out of work is her better hoover is my hero. when people are out of work, there are certain words you avoid and i like to fire people is one of them. >> at a polling place in manchester, he is holding a baby an image you would expect. if you rewind the tape. >> those shouts, are you going to fire the baby. these are words that are going to follow mitt romney. >> they are purplely taking this out of context. >> this is a purposeful distortion. this is character assassination. every single reporter knows that

romney was referring to healthcare providers. you can fire them if they don't provide the right service. f yet they are continuing to do this. five minutes before bob here is made his statement somebody went on cbs and said that people were distorting it. and he still distorted it afterwards. >> sean: i like to fire people that aren't doing a good job meaning about healthcare. his answer to a specific question. in other words, people have the choice. people can make their own decisions. >> i can guarantee you if this was democrat and they were taking it out of context, every single reporter would be on the news correcting the record to say exactly what he said. >> sean: network moderators, every candidate gop, it's all about the liberal agenda.

they always use words like we discussed last week, critics say, but it's always about the left's agenda so they can get these guys on record to help obama. let's watch this. >> governor romney, do you believe the states have the right to ban contraception or is that the troubled by constitutional right to privacy. >> i would love to be able to ask you what you would say personally sitting in your living room to the people who ask questions like this. given that you opposed gay marriage, what do you want gay people to do who want to form loving, committed long term relationships? what is your solution? >> a lot of questions have been submitted. because we do have a spending crisis but also a lot of people hurting. with more americans on government assistance, is it unamerican for americans to feel relieved which the government helps them? >> sean: i mean let's pick out

every liberal and go to every question. things they didn't do to barack obama. very interesting. >> you know, sean, i wonder why the republicans agree to do debates with people like george stephanopolous. he was the number one spinmeister, he is still spinning for the democratic party. so i fault them on this one. this is g search extensive. the questions about -- george stephanopolous. the questions about contraception. the questions americans want to do with jobs or whatever it might be. 25% of the questions on the abc interview dealt with contraception and gay rights which is why the audience started to boo the moderator at the end. >> sean: and conservatives practice dirty nasty politics in

south carolina. >> good morning, eric. new hampshire might as well be a world way. weather is warm and the politics can get downright dirty. >> in south carolina, you have covered this for years and years. dana hit on this. things get really dirty in south carolina, why is that? >> here is n conservative south carolina where the primary is notorious for nasty politics. >> sean: dirty, nasty, they don't live in hollywood, san francisco or new york? >> how about illinois, how about chicago? >> sean: i stand corrected. >> because they are social conservatives. they don't know what to do with the social conservatives of them think they are awful christians. here they go again. talk about dirty politics, go to chicago. once you've been there and you

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>> sean: tonight on great, great american panel. he served as communications director for the republican national committee. republican strategist, she is the former president of the woman's media center, green is back. author of next great bull market. business expert, matt mccall. good to see you. anytime soon. >> i really do. stock market has done pretty good first two weeks of january. >> sean: i'm hopeful and optimistic because we have nine european countries getting a downgrade. we have a president asking for $1.2 trillion in new debt. we are on pace to borrow, have borrowed first term $6.2

trillion, more than every president up to and including the eight years of clinton. how can we sustain this. >> the thing s&p 500 downgraded the u.s. few months ago. listen, you are not falling apart. you aren't defaulting on loans but get the house in order. now, we go to europe, france is downgraded, what they are saying the countries can't keep spending when you not bringing in money. that shows the lack of education when it comes to our president and anything related to the economy. you can't keep spending when you are not bringing in money. >> sean: $6.2 trillion. he called george bush unpatriotic. this is reckless. bush accumulated 4 trillion in eight years. obama has surpassed bush.

>> the bush tax cuts were reckless. >> sean: no, you can't go after.... >> why are we talking about it? >> the deal was made in august. money has been committed. basically already spent. we need to be talking about president obama said today, let's make government leaner and smarter. six agencies and put them altogether. >> sean: you talk about three separate issues. $6.2 trillion, this is new obama debt. now if we break it down, for every man, woman and child in this country, we could give them $20,000, $40,000, if we took out the 50% on federal income taxes. we could have written a tax close to $20,000. >> it's not just that he wants to raise taxes. with $15 trillion that we have

spent that we tonight have, its bailout. it's the government bailing itself out. taking that money out of economy where we need it to grow. >> sean: you hear these words, i want to consolidate this agency with or without congress's help. >> six agencies, coming together making it leaner. how many agencies did he create. he has created ten. >> these are is agencies that small businesses go to and need to get past through all the red tape. he is saying we're going to make it easier for you. >> go to michael moore, his philosophy on tax cuts and here is what he says. >> what specifically do you think the national tax rate should be for those who are making over $250,000? >> i think we should go back

before ronald reagan an. we should go back to 39%, it should go up to 50% for the upper income. >> 50%? >> yes. >> sean: doesn't look good. what is up with that. he looks sick. maybe he has a cold. i'm looking what he is saying, racist, people that didn't vote for obama. i moon it's so out of control. nobody wants to deal with obama's debt. broken promises. he is the worst president in my lifetime. it should be a no-brainer. why are people projecting it's going to be close. >> we know that he is voracious fund-raiser. he does nothing but fund-raisers. >> sean: it will work and people will buy it? >> republican attacks mirror

what he is going to, do we know that is what he is going to do. he will have the money to do it. >> michael moore, he came out and said i have been a beneficiary of the bush tack cuts. he is basically saying i've made money. >> sean: i was at convention and there on the tarmac was a huge gulf stream, that is michael moore's plane. >> here is the reality. we have a lot of folks here. we talked about how far to the left obama is and he is a socialist. but you look at michael moore, there a spectrum. he is far, far to the left of president obama. when you hear him talking, it shows you how in the middle president obama is. i think that is the difference that people don't want to acknowledge. we just came through the greatest recession. >> sean: he said, if i don't fix

this in three years, it's a one-term proposition. >> he did say that. and he started from a place losing 800,000 jobs a month. >> december of 20 -- the summer 2010 he said we in recovery. he a politician. >> sean: he lied? >> but people that register to vote for the first time, it was so powerful for barack obama didn't believe he was just another politician. >> shep: is it at the bow or brady and jim demint will take a look what is going on the ground in south carolina. much more straight ahead. that's why i recommend crest pro-health clinical gum protection. it helps eliminate plaque at the gum line, helping prevent gingivitis. it's even clinically proven to help reverse it in just 4 weeks. crest pro-health clinical gum protection.

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potentially for this in the playoffs. what do you think. >> i played football in college. i watch this guy play. amazing athlete but he is not a quarterback. >> sean: how can you say he is not a quarterback. wait a minute. he is unconventional and he can run the ball as half back or full back. he's got amazing. he's ridiculous. >> he is inconsistent but he is basically a first year quarterback in the n.f.l. >> he is something the defense hasn't really had to go against. once they figure it out by next year, he will not be the quarterback by mid next year disagrees i think you are dead wrong. >> i thought 10-14 should be playing at home. >> sean: how many yards, 361

yards. 31.6 million and average yards per pass, 31.6. >> the n.f.l. could not be happier. this was reinvigorating the fans. i a.m. washington redskins fans but i have a lot of evangelicals in my family. they don't want religion in the football. >> sean: what we're getting from athletes. there was a u.s.a. article he invites sick kids to the sidelines. spends time with them. it's part of the charity he has. he puts god first in his life. look at other athletes. they are out and screwing around with one hollywood star after another. moving on to tattoos and shooting themselves in the leg. >> he is setting himself up for disaster.

if tiger woods, he put him on pedestal. >> you have to think of superbowl couple years, nobody wanted to talk about abortion in superbowl commercials. it should be out of football but at the end of the day, tebow or brady, i don't want him either he had, left his pregnant girlfriend and went with another woman. >> now, 316 yards, 31.6 million people, 31.6 yards per pass. >> divine inspiration. >> john 3:16 is favorite verse. is this a coincidence? 43% of americans think it might have been some message. >> i guess to keep the steelers

out of the superbowl it had to be divine message. >> divine intervention is bigger than sports. people in need. we can't keep saying this is god stepping in from a football perspective. >> sean: do you believe that god has a hand in human events? good versus evil battle and garth brooks some of god's greatest gifts are some of the unanswered prayers and hairs on your head are counted is it that messages are sent? >> it could be. but we should run with this and use this to better the earth. use tim tebow as a role model. i think what is he doing for the sported and what he is doing for children is a great. the n.f.l. has to acknowledge

that. >> after the game, broncos and steelers got down on therapy and i think that is fantastic. >> why is it the notice now? >> it helps as quarterback as a defensive end probably. >> he a media karlg. the story is good. he is the underdog. it makes sense. you are right, i thank god every day and i'm sure there are lot of folks out there. >> sean: all right. south carolina senator jim demint and preview of the critical primary. that and more as we continue on this friday night. with no vege? ♪ [ gong ] strawberry banana! [ male announcer ] for a smoothie with real fruit plus veggie nutrition new v8 v-fusion smoothie. could've had a v8.

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>> sean: my next gest that 2012 may be the last chance to rain in washington's spend go and rescue america. founder of the senate tea party caucus, jim demint issues an urgent call to action and unveils his ideas how we can save this great nation from an all out collapse. i sat down earlier with jim demint and get a preview of the critical primary in the palmetto

state. >> good to see you? >> good to be in the studio with you. >> sean: saving america, i'm honored and full disclosure i'm on the front cover of the book. i got a chance to look at this early on as a critical time in american history. tell us what is wrong and tell us how to fix it. i meant it when i said it. you do something interesting in the book. you get guys like mike lee and lee and rubio and do an introduction. >> every chapter has somebody, mark co-rubio talks about american exception vandalism and pat toomey talks about the trouble we're in from a debt perspective. i'm trying to sound the alarm like you do every night. after watching it for about ten years and house and senate. i really think this may be our last chance. that is where the title came from, "now or never." >> sean: i have the same sense as you do.

i really worry that if we don't correct this ship and get it in the right direction, we're now, what, $16 trillion in debt. $5 trillion in new obama debt. i think a second term of obama, how much more debt can we accumulate? >> we can't sustain borrowing $120 billion every month. we are borrowing 40 cents of every dollar. >> it's not doomsday and the point of the book we can solve the problem and we can control our own destiny if we do it now. about but if we wait until things start collapsing. greece has lot control. the things that made america great are still working but greatly diminished. i'm trying to recruit americans to help us. >> sean: south carolina takes on this rule in picking the nominees who is going to be.

it's not going to be different this time. do you have a sense who is going to win? >> it's unfortunate by the time the candidates get to south carolina it's make or break for some of them. they get desperate and campaigns get fairly negative. so we get the brunt of what happened or didn't happened in the first two states. polls look good for romney. ron paul is going to do well. i'm not sure how the rest is going to play. some of the things.... >> shep: do you think romney wins it? >> right now from what i see the early polls, it looks like he will. as we see in the campaign, the lead changes a lot. we've got almost two weeks in south carolina, a lot of negative, a lot could change, but we're seeing some interesting things. i don't like some of the things i'm seeing. i don't like the derogatory things some of the republicans say about ron paul. if republicans don't figure out

how to listen and understand some of the things he is saying. i don't agree with all of them. but the fact that he understands the federal reserve is out of control. >> sean: i agree with him on the fed. he wants to cut trillion dollars in spending the day he would become president. >> that sounds extreme but that is how far in the hole we are. i think the republican that lesson to ron paul is saying. the whole debate in the republicans needs to be conservatives and libertarians. >> sean: mitt romney, he has won iowa and new hampshire, he has good poll numbers in south carolina. if he gets the nomination, will you be satisfied and you think he will govern conservatively? >> i think he will. a lot depends on congress. if we have a conservative

majority in the house or senate, we like the legislation, we do the budgets. i'm convinced that romney or gingrich or santorum, they would sign the legislation. now, i would like a leader that talks about limited government and balanced budget. all these candidates are doing that. i would be honored to serve with any of them. i'm not like some, if romney gets it, i can't deal with it. >> sean: you worry that paul will run third party? >> i don't think he will. sooner or later we're going to get a third party as republicans if we don't listen to that libertarian theme of individual liberty and limited government. that is our core belief as republicans. i think you have seen people gravitate away from republicans to ron paul because we are not doing what we say we're going to do. i am convinced, ron paul has a lot to offer and i would be proud to serve with any of them. >> sean: "now or